Charting Tuesday’s Market Tides with Dollar’s Dip and Earnings Enigma

By Tomasz Wisniewski|

Published: October 24 2023, 04:51 GMT+0

Charting Tuesday’s Market Tides with Dollar’s Dip and Earnings Enigma

Tuesdays, with their promise of market momentum, rarely disappoint. Today is no different, as charts paint an intriguing tale of reversals and potential opportunities.

Top of the agenda is the unexpected turn of the American dollar. It’s softer, weaker, and its retreat is giving breathing space to other instruments. Consider EURUSD. Breaking past its shackles, it’s soared beyond the key resistance at 1.062. Such dizzying heights were last seen at September’s end, signaling a notable reversal. Conversely, the American dollar to Swiss franc mirrors this weakness. It’s plumbing depths not seen since mid-September, emphasizing the dollar’s frailty in the current market context.

The macro calendar today is brimming with PMIs, chiefly manufacturing and services, from powerhouses like the Eurozone and the US. Amid these data points, a curious standout is the German flash services PMI, forecasted just a touch above 50. The question lingers: might we witness other PMIs breaching this crucial 50-mark, serving as a beacon of positive surprises?

Swinging our attention to indices, their Monday blues were palpable. Yet, there were moments of resilience. Take NASDAQ, which skillfully rebounded off the 14,450-point threshold, hinting at a support confirmation. DAX echoed this sentiment, bouncing back from 14,700 points. But optimism ought to be tempered. The overwhelming bearish sentiment could yet see these supports crumble under pressure.

On the commodities front, oil showcases a reversal. With a grim performance yesterday, it seems primed to brush against key support levels.

Wrapping up with the earnings calendar, Monday was relatively subdued. But today promises fireworks. Post-market hours will unveil figures from tech titans Microsoft and Alphabet, alongside Visa. The pre-session slot is reserved for Coca-Cola. For stock traders, it’s a day to be glued to their screens, awaiting these earnings revelations